Kyiv reported to the Americans: Why did Jacob Lew come to Ukraine?

Author : Iaroslav Konoshzhiuk

Source : 112 Ukraine

United States Secretary of the Treasury requires to cut down the oligarchs incomes and Prosecutor General resignation
13:11, 19 November 2015

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US re-teach the Ukrainian government to live within its means, and hinted that the IMF loan may not be forthcoming. US Treasury Secretary Jacob Lew on Friday, November 13, met with Prime Minister Arseniy Yatsenyuk. found out what was said by the US Treasury Secretary to Ukrainian politicians.

Greetings from the United States and the IMF

US  Treasury Secretary arrived in Kiev on Friday. On this day, he met the Minister Finance of Ukraine Natalia Yaresko and Prime-Minister Arseniy Yatsenyuk. The visit would rather be called an official inspection of the Kyiv’s implementation of taken obligations when receiving IMF money and American aid. According to sources in the Verkhovna Rada, the Ukrainian Finance Minister told his counterpart about the purposes for which US aid was spent, and the money the IMF. US Secretary didn’t guarantee new loans or other assistance to Ukraine, however, reminded of the need to fight against corruption and reforms.

"We are working with Congress to get a decision on the allocation of $ 1billion in loan guarantees," - said Lew after his meeting with the Prime-Minister and Finance Minister, noting once again that the allocation of aid depends on how our country will move towards the fight against corruption, financial stabilization and reforms in the energy sector.

In unison with him, Prime-Minister Arseniy Yatsenyuk said that Ukraine expects to receive $ 4billion from the US and the IMF under the condition of conduction of the reforms.

"The US government has already provided Ukraine $ 2 billion. Loan guarantees to stabilize the economy, to create jobs in Ukraine that Ukraine to execute economic, political and financial reforms. And Ukraine should carry out reforms in the future. If Ukraine continues reforms, the total amount of aid, including a tranche of the International Monetary Fund, will be $ 4 billion. This is 1.7 billion from the IMF (the third tranche of the loan, -, $ 1billion. loan guarantee from the US government and the macro- aid from the EU and other partners, "- said Yatsenyuk.

However, there is one condition for receiving assistance to Ukraine, which reminded Jack Lew. According to sources in the presidential administration, US insist on the dismissal of the Prosecutor General Viktor Shokina.

"It's simple. While Shokin is attorney general, the money won’t be given" - said the source agency, noting that the decision to dismiss Shokina already made and continues the selection of candidates for the position. It is possible that this position will be assigned to a foreigner.

Let's think of the budget

The same day, Jack Lew, met with leaders of parliamentary factions and the Speaker of the Verkhovna Rada Vladimir Groisman. According to the head of parliament, the parties discussed a wide range of Ukrainian-American relations. According to the same sources in the Verkhovna Rada, it was mostly about the preparation of the state budget of Ukraine for 2016.

"The Minister of Finance was very surprised to know that we still don’t have a budget. He said," Do I have to write for your budget"- said to one of the participants. It should be reminded that the Cabinet of Ministers on September 14 formally introduced to the Verkhovna Rada a draft budget for 2016, however, the same day it was withdrawn.

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According to sources in Parliament, during a meeting Jack Lew also said that the draft of th State budget 2016 must be submitted to Verkhovna Rada in November this year and adopted before the end of 2015. And the US  Treasury Secretary insists, that the main financial cost to be realistic and based on an updated tax basis, as stipulated in the memorandum on cooperation between Ukraine and the International Monetary Fund.

Meanwhile, the update of the Tax Code, declared by Ukraine is still on paper. As you know, there are two amendment drafts under the consideration of the relevant committee of Verkhovna Rada. One created by the government, and the other - a group of People's Deputies, which was already rejected my IMF. However, despite the September statement of the first deputy chairman of the faction Petro Poroshenko Bloc, Igor Kononenko, on the need to pass a law within a month, parliament cannot agree on some positions in the document. In this regard, we decided to compromise by amending the Tax Code.

" We hardly have time to consider the new Tax Code this year as it is a fundamental document, and it cannot be considered a month before the entry into force," - said in a broadcast on Ukrainian television channels, first deputy chairman of the faction Petro Poroshenko Bloc, Igor Kononenko .

In addition, United States insist on the dismissal of the oligarchs from budget flows. "The United States insists that the deooligachizatoin has been provided, means that the US insist the oligarchs to stop, figuratively speaking, live at the expense of the state treasury," - said one of the participants meeting with the US Treasury Secretary, adding that the US  has previously strongly suggested to the official Kiev to search for reserves in the country, including for payments on foreign debts.

The interviewee explained that  among other things it comes to procurement tenders for "the right of firms' goods and services at inflated prices.

Finance Minister Natalia Yaresko promises to submit the budget draft to parliament in upcoming weeks. It will be prepared on the basis of the new tax base and provides for the reduction of public spendings.

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